The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-09-22
A Scarcity of Money.

There are a good many Congressman in
Washington for this season of the year, and
the matter that is occupying the greater
part of their attention is the possibility of a
financial panic, owing TO the stringency of
the money market. Representative Will
kins, of Ohio, says that in financial circles
it is generally expected that the President
will call an extra session of Congress, to
meet early in November, but there is not
much probability that this expectation, as
Stunning that it exists, will be realized. A
few months ago, when the question of an
extra session was being generally discussed
the President said very distinctly that he
would not call one, and he has given no in
timatlon that he may change his mind.
There is undoubtedly considerable uneasi-
ness in New York on account of the
difficulty of getting money, but it is said
that those who complain most of tight
money market are engaged in speculative
enterprises. As yet those engaged in legiti-
mate business, and are able to furnish good
security, have no great difficulty in getting
what money they want at fair rates of in
terest
the causes of the money stringency are not
fully understood. It is stated that there is
10000 900 more in circulation now than
there was at this time last year, and there
was no noticeable stringency then. A well
known New York commercial authority
says that the seasons business of that city
has been excellent, and that as collections
axe good ohe returns financially are much
better than was expected.
A great deal of the money of the country
is now at the West and South, where it is
employed in moving the crops. 1t will very
soon begin to flow back to the money CEN
tres, however, and then the stringency will,
in measure, be relieved. The banks are
doubtless a little more careful in loaning
money now than they were q few months
ago, because money is scarcer and they
are in doubt as to what the effect of hold
ing so much money in the Treasury will be-
They want their money SO placed that in the
event of financial troubles they can obtain
it on short noticeg
The Treasury appears to be doing all it
can to afford the money market relief 1t
is buying bonds, and, doubtless, will con-
tinue to as long as the necessity for doing
SO exists Several plans have been sug-
gested to get the Treasury surplus into cir
culation One of them is that the govern
ment shall lend money on bonds to the ex-
tent of their face value and another is that
the government shall offer to buy per cent.
bonds as well as AIS. 1t is probable that
the As could be obtained on terms as
favorable to the government as the 415s are
now being purchased. The latter plan
might be adopted, but there is no authority
for the former
1t is apparent, however, that all the adj
minlstration can do toward improving the
financial situation is not much If it sue
ceeds in preventing financial trouble until
Congress has time to provide the necessary
legislation for getting rid of the surplus, it
will deserve the thanks of the country. The
last Congress should have so reduced the
revenues as to prevent the accumulation
of a surplus, and the failure to do SO proved
that it was not equal to the performance of
the duties which devolved upon it. Unless
the present Congress takes prompt steps to
reduce the revenues and thus relieve the
Treasury of its surplus, it will have to bear
the condemnation of an indignant people,